U.S. consumer sentiment rose in May, reaching the highest level since September, as more Americans feel the end of the recession is approaching, according to a survey released Friday by the University of Michigan and Reuters. The consumer sentiment index rose to 68.7 from 65.1 in April. In mid-May the estimate was 67.9. Economists were looking for a final May result of 68. "While consumers anticipate an improved economy, they nonetheless think that their own financial situation will improve only marginally during the year ahead," said Richard Curtin, director of the survey, in a statement. While the sentiment reading improved, it remains at relatively low levels. The index hit a 28-year low of 55.3 in November, and has averaged 88.2 over the last 10 years. Recent confidence readings have been boosted by consumers' expectations that the ravaged economy has nowhere to go but up, rather than by a belief that good times are already here. "Consumers still view their finances as out of balance with the economic realities they now face, and want to continue to increase their savings and reduce their debts," according to the Michigan report. Earlier this week, a separate report showed that confidence surged in May, though remained at relatively low levels, as consumers' expectations brightened for jobs in coming months. The Conference Board reported that the one-month increase in confidence indicated that consumers believe the economy's worst has passed. The brighter outlook could lead to more spending by consumers, according to analysts. See Economic Report. Elsewhere Friday, the Commerce Department reported that the U.S. economy contracted sharply again in the first quarter, falling at a revised 5.7% annual rate after sinking 6.3% in the fourth quarter. The Friday report was the government's second estimate of quarterly gross domestic product.

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